hindalco industries limited - aceanalyser.com meet/100440_20100129.pdf · hindalco emerged...
Post on 20-Apr-2018
217 Views
Preview:
TRANSCRIPT
11
Hindalco Industries Limited
Q3 FY10Q3 FY10
Investors Presentation Investors Presentation
2525thth JanuaryJanuary’’1010
Aluminium at 142 Kt
Alumina at 340 Kt
Wire rod at 23 Kt
22
Best Ever
Highest-ever 9-month production of alumina, aluminium and copper cathodes
YOYAluminium production up 5%FRP production up 34%Copper production up 22%
Successfully completed the QIP for US$600 MnAdvance implementation of AS-30 to reduce volatility in Cu reported results
Excellent Production Performance during Q3, FY10
Highlights
3
Stock performance post QIP
100110120130140150160170180190200210220230240250260270280290300310320330340350
1-A
pr-0
914
-Apr
-09
27-A
pr-0
910
-May
-09
23-M
ay-0
95-
Jun-
0918
-Jun
-09
1-Ju
l-09
14-J
ul-0
927
-Jul
-09
9-A
ug-0
922
-Aug
-09
4-S
ep-0
917
-Sep
-09
30-S
ep-0
913
-Oct
-09
26-O
ct-0
98-
Nov
-09
21-N
ov-0
94-
Dec
-09
17-D
ec-0
930
-Dec
-09
12-J
an-1
0
Hindalco
LME Aluminum
LME Copper
Out performs LME
Key investors
92%
5% 3%
Long only
Prop
Hedge Fund
Fully marketed deal with well communicated Novelis Turnaround Story + Hindalco strength
Quality Investors
44
Backdrop: World Economy is gradually recovering
GDP growth- Major economies India growth
US, Euro Area Growth (%, qoq, SAAR) China Growth (%, yoy) (%, yoy)
Growth in India and China is getting close to pre-crisis levels, while that of OECD countries is just turning positive
55
Business Conditions: Aluminium in recovery mode
Aluminium Exchange stock plateauingout, though still at high levels.
500,000
1,500,000
2,500,000
3,500,000
4,500,000
Dec-08
Feb-09
Apr-09
Jul-0
9
Sep-0
9
Nov-09
8001,000
1,2001,400
1,6001,800
2,0002,200
2,4002,600
Exchange Stock= Comex+LME+Shanghai
LME CSP US$/Mt
tons $ / t
Business Conditions:
Drivers Q3 FY 09 Q3 FY 10 Impact
LME Average Al ($/ton) 1,821 2,002
LME Average Cu ($/ton) 3,905 6,648
Re/USD 48.76 46.64
Tc/Rc (Jap benchmark)$/C
45/4.5 75/7.5
In Aluminium, LME gain partially negated by adverse currency movementBenchmark Tc/Rc were higher but spot Tc/Rc now at historic low levels
66
77
Hindalco Strategy: Dealing with the downturn
Cost Push
Challenges Actions
Low LME
Sweating of Assets, Focus on Key raw materials
Better product & geographical mix
Cash Generation Working Capital reduction
Hindalco emerged relatively stronger from the economic downturn
Volatility Robust Risk management practice &Early adoption of AS 30
88
Hindalco Financials -YOY
Rs CroresQ3
FY09Q3
FY10Change
(%)
5,315 29%
-4%
-18%
-22%
-28%
748
557
427
2.41
9 M FY09
9M FY10
14,448 14,132
2,115
1,590
1,252
7.26
2,722
2,532
1,962
Change (%)
Net Sales 4,117
13.61
-2%
EBIDTA 779 -22%
PBT 675 -37%
PAT 545 -36%
EPS 3.37 -47%
For nine months ended Dec2009Lower other income of Rs. 100 crs, primarily on account of lower treasury corpus following
repayment of Novelis’ bridge loanImpact of lower primary Aluminium realisation YTD Rs.(1100) croresImpact of lower By-product Credit YTD Rs. (700) crores
*On early adoption of AS-30, the figures of the current periods are not comparable with corresponding periods in the previous year
99
Hindalco Financials – Sequential
Rs Crores Q2 FY10 Q3 FY10 Change (%)
Net Sales 4,917 5,315 8%
EBIDTA 609 748 23%
PBT 434 557 28%
PAT 345 427 24%
EPS 2.02 2.41 19%
1010
Aluminium Business Performance
FRP Prodn
41.045.8
49.353.2 55.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Q3 FY09 Q4 FY09 Q1 FY10 Q2 FY10 Q3 FY10
1111
Brownfield expansion and sweating of assets led to improved production volume
Kt Kt
Kt
1212
Aluminium: Sequential Performance
Rs Crores Q2 FY10 Q3 FY10 Change
Net Sales & Operating Revenue
1650 1885 14%
EBIT 259 438 69%
1313
Aluminium: Y-o-Y Performance at a glance
Rs Crores Q3 FY09 Q3 FY10 Change
Net Sales & Operating Revenue
1,980 1,885 -5%
EBIT 530 438 -17%
141414
Copper Business Performance
Continuous improvement in operational performance
72,877
89,152
65000
69000
73000
77000
81000
85000
89000
Q3 FY 09 Q3 FY 10
Anode (Mt)
Cathode (Mt)
1515
22%
22%
•Improved efficiency leading to lower conversion costs
&
•Value extraction from By-products•Gypsum Sale
•Slag beneficiationHelped in Offsetting the
negativeimpact of sharp fall in
Byproduct prices
16
Copper: Sequential Performance at a glance
Rs Crores Q2 FY10 Q3 FY10 Change
Net Sales & Operating Revenue
3269 3432 5 %
EBIT 217 159 -27 %
1616
17
Copper: Y-o-Y Performance at a glance
Rs Crores Q3 FY09 Q3 FY10 Change
Net Sales & Operating Revenue
2,139 3,432 60 %
EBIT 116 159 38 %
1717
1818
ProjectsProjects
1919
Hirakud Smelter and Power Plant Expansion
Smelter Expansion Capacity increase from 155 to 213 KTPA through two projects
1) 28 Pots – 80 KA 2) 80 Pots – 235 kA
Power Plant Expansion Capacity to increase to 467.5 MW by Addition of 100 MW.
80 Pots –Status UpdateFirst Metal Oct’ 2011Technology GAMI DesignProgress 1.Land Acquisition completed & Statutory clearances
obtained.2. Technology agreement finalized with GAMI.3. Project activities in progress at site.
28 Pots –Status UpdateFirst Metal July’2010
Progress Equipments like Pot-shells, Bus bars, crane have started arriving at site and erection started.
Greenfield Project – Mahan Aluminium
First Metal from Smelter- July ’11 2020
Mahan Smelter- Pot line and area grading photos
2121
Greenfield Project – Utkal Alumina
Engineering Basic Engg-100 % Complete, Detailed Engg- 86% Completed, not on critical path
Statutory Clearances Obtained
Commitment & Spent Rs.3877 Crs Committed & Rs 1423 Cr Spent.All major order placed.
Site Progress: Major Contractors have fully mobilized at site. ~80% of Piling work completed. Structure fabrication and concrete work in progress.
Power Plant : Engineering nearing completion. Boiler unit 1 Erection started.
The Project is geared up for July 2011 commissioning. 2222
2323
OH Tank Foundations under progress
Greenfield Project – Utkal Alumina
Pipe rack‐ PR 022, 48 columns & beams erection completed Digestion area – civil foundation under progress
Evaporation Package – Foundations ready for structure columns erection
PPTs – 5 tanks shell erection in various stages (TK-202, 204, 205,102 & 104)
2424
Greenfield Project – Aditya Smelter
Engineering Basic Engg-nearing completion, Detailed Engg- 43% Complete.
Statutory approvals Major approval received. Stage I clearance for MOEF received.
Commitment & Spent Rs.4349 Cr. Committed and Rs 1020 Cr. spent
Site Progress Project Office at Lapanga – Sambalpur opened on 1st Oct 09.Construction of Boundary Wall at Lapanga Township Completed and that of Core plant area in progress.
Power Plant BTG order placed on BHEL. Detailed engineering 14 % completed.
First Metal from Smelter- Oct ’11
Jharkhand Smelter
Land Total land requirement of ~4000 Acres identified.
Water Water drawl clearance received for 55 MCM. Route Survey and Design of water drawl scheme completed and report submitted.
Environmental clearance
TOR presentation done at MoEF.
Railway Report for Conceptual Approval of Railway Siding has been sent to SE Railway. Clearance expected by end January.
DPR DPR Preparation to start by DCPL.
First Metal from Smelter- Jun ’13 2525
Aditya Refinery
Land Land requirement is ~ 1881 Acres. Entire Private land is registered in the name of company, Process for government land in process.
Water Agreement signed with Government of Orissa for drawl of water from Pathgarha river.
Environmental clearance
Clearance received, subject to Forest diversion.
Construction power Clearance received, 33 KV line erected.
Railway Railway siding clearance obtained. Earth work started.
R & R R & R colony plan approved. Construction to start from April2010.
Alumina Refinery commissioning – June ’13 2626
2727
Brownfield Project – Can Body Stock at Hirakud
Project Completion: July 2011
Project Cost Approved for 850Cr.
Dismantling at Rogerstone
The work has started from 1st week of January. Duration – 6 Months. Shipping will start from 3rd week of February.
Upgradation of Hot Mill
The order has been placed
New Cold Mill order Technical specification frozen. Vendors finalized.
Plant layout In final stages.
Detailed Engineering Final commercial negotiation under progress
Organization Five member core team operating from Mumbai.
2828
Summing Up
All-out cost focus helped us during the downturn
With improving economic prospects, outlook seems
promising
Energy prices and concentrate sourcing continue to
be the key challenges
Positive about coming out of the downturn with our
targeted growth trajectory unchanged
Appendix
2929
3030
Production (MT) Q3 FY10 Q3 FY09 9M FY10 9M FY09
Alumina 339,899 319,074 963,522 918,959
Metal 142,048 135,073 417,382 390,274
Wire Rod 23,363 18,657 68,726 54,703
Flat Rolled Products 55,030 40,968 157,484 137,474
Extrusion 10,531 7,555 29,158 28,780
Aluminium Production
3131
Sales Units Q3 FY09
Q3 FY10
9M FY09
9M FY10
Chemicals Rs Crs 138 161 494 418
Primary metal Rs Crs 1,025 804 2,646 2,105
Flat Rolled Products & Foil Rs Crs 621 712 2,139 1,913
Extruded products Rs Crs 108 151 462 391
Others Rs Crs 88 57 302 129
Aluminium Sales Revenue
3232
Production (MT) Q3 FY10 Q3 FY09 9M FY10 9M FY09
Copper Cathodes 89,152 72,877 258,626 210,851
CC Rods (Own) 32,969 33,189 93,671 91,249
Copper Production Volumes
3333
Sales Revenue Unit Q3 FY09 Q3 FY10 9M FY09 9M FY10
Copper Cathodes Rs Crs 729 1,706 3,385 4,318
CC Rods Rs Crs 1,016 1,114 3,351 3,222
Others Rs Crs 394 612 1,675 1,641
Copper Sales Revenue
top related